Proceedings

PDF Version
PDF Version

IN THE MATTER OF

THE SECURITIES ACT

R.S.O. 1990 C. S.5, AS AMENDED

AND

IN THE MATTER OF

THE REGISTRATION OF

ALAN NEIL KIPPAX

OPPORTUNITY TO BE HEARD BY THE DIRECTOR

PURSUANT TO SUBSECTION 26(3) OF THE SECURITIES ACT

Date:
December 4, 2003
 
Director:
Julia Dublin
Senior Legal Counsel
Director's Office
 
Submissions:
Valmiki Rampersad
Registration Officer
 
Alan Neil Kippax
Registrant

Decision

Mr. Kippax has exercised his right to be heard in respect of the Director's decision under subsection 26(1) of the Securities Act (Ontario) to grant, refuse, or impose terms and conditions on his application for registration as a salesperson of Global Educations marketing Corporation, a dealer registered under section 25 of Act and classified in the category of Scholarship Plan Dealer under section 98 of the regulations under the Act. I have reviewed his submission and supporting material and the recommendation of Registration staff. Exercising the authority of the Director delegated to me, I find Mr. Kippax unsuitable for registration.

Reasons for Decision

An individual's registration to engage in the securities business in Ontario is a privilege, not a right. In general individuals seeking registration as salespersons under the Securties Act are expected to show that they are honest, upright and of good character, as well as financially solvent and proficient. In granting registration, the Director must take into account that an individual licensed to provide financial services to consumers on behalf of a registered dealer has a number of obligations. He or she must be amenable to supervision by the dealer and the regulator. They must also be able to supervise their own behaviour to ensure the highest standards of conduct and integrity are met, and that there is ongoing compliance with licensing requirements. I accept Mr. Kippax's and Ms. Velechovsky's submission that that Mr. Kippax relied on expert legal advice in omitting the past offenses from his Form 4. However, these past incidents involving as they do drugs, weapons and assault, in themselves raise grave concerns about his conduct and character.

Mr. Kippax maintains he has reformed, and indeed these offenses all cluster in the 1980s when he was in his early 20s. However, the recent driving citations show a problem with the self-supervision necessary to conform to the restrictions on personal freedom of a licensing system. In addition, Mr. Kippax appears to have mainly been, and continues to be, self-employed in a number of different ventures. As a result, he cannot demonstrate any significant period of working under supervision as an employee. His duties as an educational savings plan salesperson would involve significant unsupervised client contact, as opposed, for example to the supervisory environment that would exist were he, for example, an employee of a bank. Mr. Kippax has not previously been engaged in the financial services business, so he has no track record in the industry to weigh against concerns about his conduct. Further, a refusal of registration would not be shutting him out of an occupation in which he has expertise or which constitutes his livelihood.

Director's Findings

In my view, under all the circumstances, it appears to me that Mr. Kippax is not suitable for registration.

December 4, 2003.

"Julia Dublin"